In my last blog I outlined 7 steps to creating your best CRE year yet. Where do we start? We start with the past – a review of what you’ve done financially, the actual transactions that you’ve completed, and all of the elements associated with those opportunities. Once we understand where you are, we can identify where we’re going.
Let me ask you this: what was your average deal size last year, and the year before that? What clients did you work with? Which clients are the most attractive to you – both now and in the future?
Whenever we take on a new coaching client, one of the first exercises we perform is a “Historical Income Analysis”. We have a template workbook our members utilize, but you can do a modified version on your own if you know some basic Excel functions.
First you will want to create column headings for every variable you can think of. Start with opportunity name, transaction type, property type, sale price/lease value, date completed, and commissions earned. We dig much deeper with our coaching clients, but this information will be a good start.
Second, fill in each column with as many deals you can – include only closed deals for now, and it’s best if you go back as far as possible. We have had some clients include 15 years of historical data, but at the very least attempt to list 3 years of closed deals.
Third, create a Pivot Table on your data. If you are not sure what this is, Google it. It’s pretty straight forward. By creating a pivot table on your data can determine:
- What was the average size deal with those clients?
- Where do you get those clients?
- What was the source? Was it a prospect call? Was it a website, a lead, a company referral? Was it the same clients?
- Where were those clients and opportunities located?
- What market are you best to focus on moving forward?
- What product type have you really been successful with in the past, and what product type is best for you moving forward?
Your historical income is a not only a great predictor of future income opportunities, it is also a great tool for identifying how to exponentially grow your business.
Here are 3 opportunities for you to consider if you are interested in growing your personal CRE business:
1. Join me as I interview Rick Lackey, Founder of Real Professionals Network. We will be discussing the current trends in major and secondary markets, and what this means to you. To register for this free webinar, which is being held on December 6 at 1:00 pm EST click here.
2. I will also be offering a free weekly webinar, every Thursday, starting on December 7th at 1:00 pm EST. This webinar, “18 Strategies to Maximizing Commissions in 2018” will be repeated each Thursday through January 11th – to register click here.
3. Finally, for those of you who are ready to transform your commercial real estate efforts into a thriving, consistently growing personal business. Click here to schedule a free consult call with one of our program consultants.